By NICK BUDD
Hays Post

In early August, Hays Mall LLC submitted a petition to the city of Hays to create a community improvement district on the mall’s property in order to help fund improvements.

The proposed CID would implement a 1-percent sales tax hike, bringing the total sales tax to 9.4 percent only at stores at the Hays Mall. The revenue from the 1-cent sales tax would be used to reimburse Hays Mall LLC on a pay-as-you-go basis, with a limit of approximately $3.14 million.

Proposed improvements include renovations and improvements to the interior, entrances, landscaping and parking lots and the installation of exterior LED lights. Developers also want to demolish the bank drive-through and the former Montana Mike’s restuarant.

If approved by the Hays City Commission, the CID would encompass the lot the mall occupies. Hays Mall LLC has submitted an application fee of $1,000 and a deposit of $5,000 to the city to pay for out-of-pocket costs.

According to the cost-benefit analysis submitted to the city by Hays Mall LLC, “the potential benefit … is both tangible and intangible. Because the city’s direct costs are zero, the benefit-to-cost ratio easily exceeds the ratio required by the city’s economic development policy.

Commissioners are expected to discuss the creation of the CID and scheduling a public hearing at Thursday’s work session. Hays Mall LLC estimated $18.4 million in sales in 2013 as opposed to approximately $25.6 million in 2012.

Click HERE for a complete agenda for Thursday’s work session, scheduled to begin at 6:30 p.m. at City Hall.